These are the top AI stocks based on best value, fastest growth, and most momentum.

March saw a slew of major developments in the artificial intelligence (AI) space. OpenAI projected its revenue will reach $12.7 billion in 2025 and exceed $125 billion by 2029. However, the private company cautioned that it does not expect to be cash-flow positive for the next four years. While OpenAI remained bullish on the industry’s prospects, Microsoft (MSFT) took a more cautious stance, canceling two gigawatts of data center projects in the U.S. and Europe due to lower demand projections. The move came just ahead of the initial public offering (IPO) of CoreWeave, a leading high-performance computing and AI infrastructure firm, which cut the size of its IPO by 25%, signaling waning investor enthusiasm.

All data are current as of March 27, 2025.

Best-Value AI Stocks

Value investing is about finding stocks trading below their true worth, with the expectation that the market will eventually correct the mispricing and the stock price will rise. Investors often use price-to-earnings (P/E) ratio to find stocks that are undervalued, as a lower P/E ratio can indicate that a company is valued at less than its fundamental value.

However, it may take multiple quarters or years before a turnaround materializes.  Some stocks may also remain cheap for a reason, falling into a “value trap,” continuing to underperform despite appearing undervalued. Moreover, the P/E ratio should not be viewed in isolation. Investors should ask why a stock is trading at a discount to its peers and whether that gap is likely to close due to a business recovery, or the market recognizing the value opportunity.

Best-Value AI Stocks
	Price ($)	Market Capitalization ($B)	12-Month Trailing P/E Ratio
Yiren Digital Ltd. (YRD)	7.39	0.6	3.0
Hut 8 Corp. (HUT)	12.32	1.3	3.8
Consensus Cloud Solutions, Inc. (CCSI)	23.56	0.5	5.1

• Yiren Digital Ltd: An AI-powered fintech company based in China, Yiren Digital offers payment processing, loan services, insurance, and ecommerce products. On March 27, Yiren announced it had formed a strategic joint venture to deliver AI-powered financial services in Indonesia.
• Hut 8 Corp: Hut 8 is a digital infrastructure company focused on high-performance computing hosting and Bitcoin mining. As of March 6, the company owns over 1 gigawatt of energy infrastructure across Canada and the U.S., with 3 megawatts dedicated to high-performance computing and AI.
• Consensus Cloud Solutions, Inc. Consensus Cloud Solutions provides a secure, cloud-based fax service that helps businesses, especially in health care, exchange and manage documents digitally. Consensus’s Clarity platform can extract critical information from unstructured data using natural language processing (NLP), with use cases in patient record keeping for health care customers.

Fastest-Growing AI Stocks

Growth investors look for companies with increasing revenue and earnings per share (EPS), believing these metrics signal strong business fundamentals and potential for value appreciation. However, relying on just one of these indicators can present an incomplete picture, as factors like tax law changes, mergers, or one-time gains can distort the numbers.

For a more balanced assessment, we screen AI growth stocks by looking at the most recent year-over-year percentage growth for both revenue and EPS, giving each equal weighting. We also excluded companies with growth rates in either category of 1,000% or more on the grounds that these are likely outliers.

Fastest-Growing AI Stocks
	Price ($)	Market Cap ($B)	EPS Growth (%)	Revenue Growth (%)
InterDigital, Inc. (IDCC)	215.79	5.5	189	140
Innodata Inc. (INOD)	40.09	1.3	493	127
SoundHound AI, Inc (SOUN)	8.88	3.5	101	53

• InterDigital, Inc: InterDigital is a research and development company specializing in wireless, video, and AI technologies for smartphones, consumer electronics, vehicles, and cloud services. In early March, the company signed a new multi-year licensing deal with a major Chinese smartphone vendor, increasing its annualized recurring revenue outlook by $40 million.
• Innodata, Inc: Innodata Inc. is a data engineering company specializing in delivering high-quality training data for use in generative AI models. Recently the company reported record Q4 and full-year 2024 results, with Q4 revenue up 127% year-over-year to $59.2 million and full-year revenue nearly doubling to $170.5 million.
• SoundHound AI, Inc: SoundHound’s proprietary technology offers fast, accurate voice recognition across various industries, including automotive, TV, Internet of Things (IoT), and customer service. On Feb. 27, SoundHound announced 2024 revenue of $84.7 million, up 85% year-over-year, as the company expanded across major sectors including automotive, restaurants, health care, and telecom.

AI Stocks With the Most Momentum

Momentum investing is a strategy that seeks to capitalize on existing market trends by investing in stocks that have recently outperformed their peers or the broader market. The core idea is that stocks on an upward trajectory are likely to continue rising as long as the fundamental drivers
behind their growth remain intact.

The momentum strategy has become synonymous with AI, owing to the fast growth of this sector. AI names can generate returns that far outpace established tech names, driven mostly by investor sentiment. While it’s a viable strategy for those with a higher risk tolerance, investors should also focus on the company’s underlying financials to ensure the anticipated growth prospects will materialize.

Here are the AI stocks with the highest total return in the last 12 months.

	Price ($)	Market Cap ($B)	12-Month Trailing Total Return (%)
Quantum Computing, Inc. (QUBT)	7.87	1.1	622
Innodata, Inc. (INOD)	40.09	1.3	562
VNET Group, Inc. (VNET)	9.01	2.4	453

• Quantum Computing, Inc: Quantum Computing is an integrated photonics and quantum technology company focused on developing accessible and affordable quantum computing solutions. Despite skepticism surrounding the near-term viability of quantum computing, the company has partnered with agencies such as NASA.
• Innodata, Inc: Innodata is a data engineering company specializing in delivering high-quality training data for use in generative AI models. Recently the company reported record fourth-quarter and full-year 2024 results, with fourth-quarter revenue up 127% year-over-year to $59.2 million and full-year revenue nearly doubling to $170.5 million.
• VNET Group, Inc: VNET operates high-performance internet data centers across China, providing server hosting, cloud computing, and secure virtual private network (VPN) services. The company wrapped up a successful 2024 with revenues increasing 11% year-over-year to $1.13 billion with 468 megawatts of total data center capacity.

Advantages of AI Stocks

Mass Disruption

AI is a rapidly evolving sector with applications across nearly every industry, from health care to finance and cybersecurity. As adoption accelerates, AI companies have significant room for revenue expansion and market dominance. Furthermore, ongoing advancements in research and development are enhancing AI models’ reasoning and adaptability, unlocking even greater disruptive potential.

Innovation

AI-driven automation enhances efficiency, leading to reduced costs for businesses. Companies leading in AI development can secure long-term competitive advantages, making them attractive investments in both the short and long term.

Investor Enthusiasm

AI stocks often experience strong investor enthusiasm, driving rapid price appreciation. With ongoing advancements in machine learning, automation, and generative AI, market sentiment remains highly bullish, fueling momentum-driven gains.

Disadvantages of AI Stocks

High Valuations and Market Speculation

Many AI stocks trade at high valuations due to investor enthusiasm and growth expectations. While the AI sector has strong long-term potential, some companies may be overvalued, leading to the risk of significant price corrections. Speculative investments, particularly in early-stage AI companies, can result in inflated valuations that may not be supported by actual revenue or profitability.

Regulatory Risks

AI technology is increasingly facing scrutiny from governments and regulatory bodies worldwide. Concerns over data privacy, algorithmic bias, job displacement, and national security risks could lead to stricter regulations that impact operations and growth prospects. The legal landscape around AI is still in its early stages, and new laws around transparency, intellectual property rights, and ethical AI development are being fleshed out.

Stiff Competition

The AI industry is highly competitive, with major players such as Alphabet (GOOGL), Microsoft (MSFT), Nvidia (NVDA), and OpenAI continuously advancing their technologies. This rapid pace of innovation means that companies that fail to stay ahead may become obsolete. Additionally, emerging AI startups such as DeepSeek can disrupt established players seemingly overnight, making it difficult for investors to predict long-term trends.

The Bottom Line

AI stocks offer significant growth potential, fueled by rapid technological advancements and strong investor enthusiasm. However, high valuations, regulatory uncertainties, and intense competition pose risks that investors must carefully navigate. While AI remains a compelling long-term investment, careful scrutiny of a company’s financials and thorough risk management are essential to avoid speculative bubbles and hype.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

These are the top tech stocks based on best value, fastest growth, and most momentum.

Tech stocks continued to retreat in March as markets grappled with heightened volatility following the Trump Administration’s announcement of tariffs targeting major trading partners. Economic data during the month offered a mixed view of the Federal Reserve’s outlook on potential rate cuts—consumer sentiment appeared to be weakening, yet the labor market remained robust, with unemployment holding steady at 4.1%. Amid the geopolitical and macroeconomic uncertainty, the Technology Select Sector SPDR Fund (XLK) declined 4% in March.

All data are current as of March 27, 2025.

Best-Value Tech Stocks

Value investing is about finding stocks trading below their true worth, with the expectation that the market will eventually correct the mispricing. Investors often use price-to-earnings (P/E) ratio, looking for stocks with a low P/E ratio to uncover value. Typically, a lower P/E ratio signals an undervalued stock because it means the company is valued less than its fundamental value. These stocks may offer a stronger return after the market adjusts.

However, bargain hunters must exercise patience, as it may take multiple quarters (or years) before a turnaround materializes. Some stocks may also remain cheap for a reason, falling into a “value
trap,” continuing to underperform despite appearing undervalued. Moreover, the P/E ratio should not be viewed in isolation. Investors should ask why a stock is trading at a discount to its peers and whether that gap is likely to close due to a business recovery, or the market recognizing the value
opportunity.

Best-Value Tech Stocks
	Price ($)	Market Capitalization ($B)	12-Month Trailing P/E Ratio
Yiren Digital Ltd. (YRD)	7.39	0.6	3.0
Hut 8 Corp. (HUT)	12.32	1.3	3.8
Yalla Group Limited (YALA )	5.79	0.9	7.8

• Yiren Digital Ltd: An AI-powered fintech company based in China, Yiren Digital offers payment processing, loan services, insurance and ecommerce products. On March 27, Yiren announced it had formed a strategic joint venture to deliver AI-powered financial services in Indonesia.
• Hut 8 Corp: Hut 8 is a digital infrastructure company focused on high-performance computing hosting and Bitcoin mining. As of March 6, the company owns over 1 gigawatt of energy infrastructure across Canada and the U.S.
• Yalla Group Limited: Yalla Group is the leading online social networking and gaming platform in the Middle East and North Africa region. The company ended its fiscal year 2024 with 41 million monthly active users and 12 million paying users, generating $340 million in revenue.

Fastest-Growing Tech Stocks

Growth investors look for companies with increasing revenue and earnings per share (EPS), believing these metrics signal strong business fundamentals and potential for value appreciation. However, relying on just one of these indicators can present an incomplete picture, as factors like tax law changes, mergers, or one-time gains can distort the numbers.

While growth investing offers the potential for high returns, it also comes with risks, such as inflated valuations, market volatility, and companies failing to sustain rapid expansion. Investors should
be cautious of excessive hype, unsustainable growth rates, and external economic factors that could impact performance. For a more balanced assessment, we employ a dual-metric approach. We equally weight the most recent year-over-year (YOY) percentage growth in both revenue and earnings per share (EPS), giving each consideration to provide a clearer view of each company’s true growth trajectory. In addition, we exclude companies that exhibit extraordinarily high growth rates—specifically, those with quarterly growth exceeding 1,000%—since these are outliers not likely on a sustainable trendline.

Fastest-Growing Tech Stocks
	Price ($)	Market Cap ($B)	EPS Growth (%)	Revenue Growth (%)
InterDigital, Inc. (IDCC)	215.79	5.5	189	140
Innodata Inc. (INOD)	40.09	1.3	493	127
CleanSpark, Inc. (CLSK)	7.92	2.2	735	19.5

• InterDigital, Inc: InterDigital is a research and development company specializing in wireless, video, and AI technologies for smartphones, consumer electronics, vehicles, and cloud services. In early March, the company signed a new multi-year licensing deal with a major Chinese smartphone vendor, increasing its annualized recurring revenue outlook by $40 million.
• Innodata, Inc.: Innodata is a data engineering company specializing in delivering high-quality training data for use in generative AI models. Recently the company reported record Q4 and full-year 2024 results, with Q4 revenue up 127% year-over-year to $59.2 million and full-year revenue nearly doubling to $170.5 million.
• CleanSpark, Inc: Self-described as “America’s Bitcoin Miner,” CleanSpark develops bitcoin mining infrastructure across the U.S. As of Feb. 28, the company owns or operates 915 megawatts of mining sites and holds 11,177 bitcoins.

Tech Stocks With the Most Momentum

Momentum investing is a strategy that seeks to capitalize on existing market trends by investing in stocks that have recently outperformed their peers or the broader market. The core idea is that stocks on an upward trajectory are likely to continue rising as long as the fundamental drivers
behind their growth remain intact.

This strategy is particularly popular in the tech sector, where innovation, product launches, and market disruptions often lead to rapid stock price appreciation. However, investors must carefully monitor stock valuations, as fast-rising stocks often outpace their fundamentals. When valuations become overstretched, they can form speculative bubbles that are vulnerable to sharp selloffs if market sentiment shifts. Here are the tech stocks with the highest total return in the last 12 months.

Tech Stocks With the Most Momentum
	Price ($)	Market Cap ($B)	12-Month Trailing Total Return (%)
Red Cat Holdings, Inc. (RCAT)	6.00	0.5	660
Quantum Computing, Inc. (QUBT)	7.87	1.1	622
Innodata, Inc. (INOD)	40.09	1.3	572

• Red Cat Holdings, Inc: Red Cat is a drone technology company specializing in integrating robotic hardware and software for military, government, and commercial applications. While the Pentagon faces projected budget cuts of $50 billion over the next five years, drone technology remains a top defense priority, positioning Red Cat to benefit from continued investment in the sector.
• Quantum Computing, Inc: Quantum Computing is an integrated photonics and quantum technology company focused on developing accessible and affordable quantum computing solutions. Despite skepticism surrounding the near-term viability of quantum computing, the company has partnered with agencies such as NASA, working “to support NASA’s advanced imaging and data processing demands.”
• Innodata, Inc: Innodata is a data engineering company specializing in delivering high-quality training data for use in generative AI models. Recently the company reported record Q4 and full-year 2024 results, with Q4 revenue up 127% year-over-year to $59.2 million and full-year revenue nearly doubling to $170.5 million.

Advantages of Tech Stocks

Growth Potential

Tech companies, especially those in emerging sectors like artificial intelligence, cloud computing, and cybersecurity, often experience rapid revenue and earnings growth. Many tech firms have scalable business models that allow them to expand globally, while maintaining high gross margins.

Innovation

The tech industry is constantly evolving, with companies pioneering groundbreaking innovations that reshape entire industries. Investors in leading tech firms can benefit from major technological shifts, such as AI, and automation, creating long-lasting competitive advantages.

Recurring Revenues

Many tech companies, particularly those in software, cloud computing, and digital services, operate on subscription-based or recurring revenue models, ensuring more stable and predictable cash flows. These models provide businesses with greater revenue visibility, reduce dependence on one-time sales, and enhance customer retention through long-term contracts and service integrations. Additionally, recurring revenue helps mitigate economic downturns by offering consistent income streams, while also enabling companies to reinvest in research, development, and expansion

Disadvantages of Tech Stocks

Volatility

Tech stocks are known for their high volatility because rapid technological changes and competitive pressures can lead to significant price fluctuations. They often carry high valuations based on growth expectations, making them susceptible to market corrections if they fail to meet these
projections. Furthermore, regulatory challenges and geopolitical tensions can impact the sector, introducing additional risks and uncertainties for investors.

Valuation Risks

Owing to their high growth potential, many tech companies trade at high earnings or revenue multiples, making them susceptible to overvaluation. If growth expectations do not materialize, these stocks can experience sharp declines, leading to potential losses for investors. Moreover,
early-stage tech companies often allocate a significant portion of their capital to staffing and marketing to sustain their high growth rates. As a result, they tend to remain unprofitable in their initial stages, often relying on outside capital to fund expansion, despite achieving higher gross margins than companies in non-technology sectors.

Regulatory and Competitive Challenges

The tech industry faces increasing scrutiny from regulators on issues like data privacy,
antitrust concerns, and cybersecurity. Tech giants such as Meta Platforms (META)
and Alphabet Inc (GOOGL) are no strangers to regulatory probes and fines.  Additionally, competition is fierce, with companies constantly innovating to maintain their market position, which can erode profitability and market share over time.

The Bottom Line

Tech stocks offer compelling investment opportunities due to their high growth potential, continuous innovation, and recurring revenue models, making them a dominant force in the global economy. AI is set to be a major driver of technological advancements in 2025, with the potential to
disrupt all major industries. However, the sector can be volatile, with regulatory scrutiny expected to increase along with innovation. Investors should exercise caution, ensuring that even the most promising tech stocks are evaluated critically to avoid getting caught up in market bubbles or
speculative hype.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

ETFs can help investors diversify their portfolio through a single investment product

Exchange-traded funds (ETFs) are investment funds that trade on stock exchanges, similar to individual stocks, and typically track an index, sector, commodity, or asset class. They offer investors diversification, as a single ETF can hold a broad mix of securities, reducing risk compared to investing in individual stocks. ETFs also tend to have lower expense ratios than actively managed mutual funds and provide liquidity, allowing investors to buy and sell shares throughout the trading day at market prices.

Key Takeaways

• Leading ETFs offer investors an opportunity to broadly diversify their holdings through a single investment with a low expense ratio and/or higher returns compared to competitors.
• We screened for the equity, bond, fixed income, commodities, and currency ETFs providing the highest one-month total returns for April 2025.
• These funds include SILJ, ISHG, SPSK, CPER, FXE

Below, we outline the top equity, bond, fixed income, commodities, and currency ETFs that generated the highest returns over the last month. We have excluded leveraged and inverse ETFs, as well as funds with less than $50 million in assets under management (AUM).

All data are current as of March 27, 2025.

Equity ETF with the Best 1-Month Return: Amplify Junior Silver Miners ETF (SILJ)

• One-month performance: 13.9%
• Expense Ratio: 0.65%
• Annual Dividend Yield: 5.8%
• 30-Day Average Daily Volume: 3,327,081
• Assets Under Management (AUM): $1.14 billion
• Inception Date: Nov. 28, 20212
• Issuer: Amplify Investments​

SILJ is the first and only ETF focused on small-cap silver miners, offering targeted exposure to a unique segment of the precious metals market. As of March 27, its top holding was shares of First Majestic Silver Corp (AG). Silver, much like gold, has rallied in 2025 as investors chase safe-haven
assets in the face of heightened geopolitical uncertainty.

Bond ETF with the Best 1-Month Return: iShares 1-3 Year International Treasury Bond ETF (ISHG)

• One-month performance: 1.6%    
• Expense Ratio: 0.35%
• Annual Dividend Yield: 2.46%
• 30-Day Average Daily Volume: 22,052
• AUM: $87.8 million
• Inception Date: Jan. 21, 2009
• Issuer: BlackRock, Inc.

The iShares 1-3 Year International Treasury Bond ETF provides exposure to short-term government bonds from developed markets outside the U.S., focusing on maturities between one and three years. The ETF has rallied over the past month as central banks look to cut interest rates (which drives up short-term bond prices) due to slowing economic growth.

Fixed Income ETF with the Best 1-Month Return: SP Funds Dow Jones Global Sukuk ETF (SPSK)

• One-month performance: 0.89%
• Expense Ratio: 0.5%
• Annual Dividend Yield: 3.5%
• 30-Day Average Daily Volume: 148,710
• AUM: $293.9 million
• Inception Date: Dec. 30, 2019
• Issuer: Tidal Financial Group

SPSK is a Sharia-compliant ETF that provides exposure to a diversified portfolio of asset-backed sukuk. A sukuk is a Sharia-compliant financial instrument similar to a bond, but instead of paying
interest (which is prohibited in Islam), it gives investors partial ownership of an underlying asset and pays returns from that asset’s profits.

Commodities ETF with the best 1-Month Return: United States Copper Index Fund (CPER)

• One-month performance: 15.5% 
• Expense Ratio: 0.97% 
• Annual Dividend Yield: N/A
• 30-Day Average Daily Volume: 145,575 
• AUM: $205.3 million 
• Inception Date: Nov. 15, 2011
• Issuer: Marygold

The United States Copper Index Fund (CPER) is an ETF designed to track the daily performance of the SummerHaven Copper Index Total Return, which invests in copper futures contracts. Copper prices have soared in recent days as the ongoing trade war between the U.S. and its trading partners threatens to disrupt supplies of the vital metal, while fiscal stimulus in China is expected to drive copper demand.

Currency ETF with the Best 1-Month Return: Invesco Currency Shares Euro Trust (FXE)

• One-month performance: 2.36% 
• Expense Ratio: 0.40% 
• Annual Dividend Yield: 2.12%
• 30-Day Average Daily Volume: 117,795
• AUM: $224.4 million
• Inception Date: Dec. 9, 2005
• Issuer: Invesco

The Invesco Currency Shares Euro Trust is an ETF designed to track the price of the euro through physical euro holdings. The euro is the currency of 19 European Union countries.

How We Chose the Best ETFs

We selected the best ETFs across five areas of focus—equities, bonds, fixed-income, commodities, and currencies—utilizing a screener by VettaFi. In each case, we sorted ETFs according to the specified category and ranked them by highest one-month returns. We then filtered out any ETFs that employ a leveraged or inverse strategy, as well as any with less than $50 million in assets under management. Finally, for currencies ETFs, we excluded any funds focused on cryptocurrencies from our screen.

How to Invest in ETFs

To invest in ETFs, start by researching and selecting an ETF that aligns with your financial goals, risk tolerance, and investment strategy—whether it tracks a broad market index, a specific sector, or a commodity. Open a brokerage account with a platform that offers ETF trading, then place an order
just like you would for a stock. Consider factors such as expense ratios, liquidity, and tracking accuracy to ensure you’re getting the best value for your money. Depending on your time horizon and risk tolerance, ETFs typically require minimal maintenance and are often considered long-term, buy-and-hold investments.

The Bottom Line

ETFs are versatile and cost-effective investment options that provide diversification, liquidity, and tax efficiency, making them ideal for both new and experienced investors. With minimal maintenance required, they offer a simple way to gain exposure to broad markets or specific sectors while managing risk.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above ETFs.

These are some of the penny stocks with interesting charts using technical analysis that performed well over the past month

Once a stock price is below $5 per share, it is categorized as a penny stock. Frequently, but not always, penny stocks have small market capitalizations and are prone to high volatility due to low liquidity and trading volumes. Penny stocks can, therefore, provide an opportunity for large, quick gains because a small movement in the price of a penny stock can produce a large percentage gain. But they also carry significant risks compared to more established stocks. To guard against the risks associated with investing in penny stocks, the stocks discussed in this article have a minimum price and volume criteria, along with clear chart patterns and other technical analysis indicators.

Below is an analysis of developing bullish patterns in penny stocks for April 2025, pulled from a screen showing positive one-month performance, a minimum price of $1.50, and 30-day average daily volume of 200,000 shares.

All charts and data are current as of March 27, 2025.

EMX Royalty Corporation (EMX)

• Price: $2.11
• One-month return: 17.9%
• Average daily trading volume: 386,000
• Exchange: New York Stock Exchange

EMX Royalty Corporation (EMX) is in the industrial metals and mining industry and explores for and receives royalties from mineral and mining properties. The company’s stock has formed a large potential head and shoulders bullish reversal pattern that recently tested resistance around the neckline with a high of $2.15. Resistance was seen at the exact swing high from May 2024 that led to a decline and establishment of the right shoulder of the pattern. During the advance, a breakout above the 200-week moving average was triggered. A new breakout of the head and shoulders pattern would further confirm the strength indicated by the moving average breakout. A daily or weekly close above either line will provide further evidence for improving underlying demand that could lead to a new bullish reversal and the beginning of an uptrend.

New Gold Inc. (NGD)

• Price: $3.62
• One-month return: 33.0%
• Average daily trading volume: 22.0 million
• Exchange: NYSE

The stock of New Gold Inc. (NGD) triggered a decisive bullish breakout of a seven-month basing pattern recently and it looks poised to move higher. Signs of strength include the fact that support for the consolidation pattern was seen above $2.40. That price level was previously resistance at the January 2021 swing high. Notice that a breakout of the $2.40 high triggered in August 2024, and it was quickly followed by a successful test of that price area as support. That pullback was followed by a spike higher. The breakout triggered a continuation of the advance from the March 2020 low. Also, during the sideways correction, NGD stock stayed above the prior resistance at $2.40, indicating it as an area of support. During the correction, the low was $2.43. In the short-term, the stock of NGD is extended, but following a pullback, it should establish new price patterns to consider.

Protara Therapeutics, Inc. (TARA)

• Price: $4.54
• One-month return: 21.4%
• Average daily trading volume: 301,400
• Exchange: Nasdaq

After establishing a swing low of $1.60 in October of last year, the stock of Protara Therapeutics, Inc. (TARA) advanced by $8.89 or 557% in eight weeks. A bearish correction followed, resulting in a higher swing low at $3.19 in early March. Support was seen at the 50-week moving average. That was the first test of support since the 50-week moving average, currently at $3.18, was reclaimed in late November. During the rally, the stock broke out above the 200-week moving average for the first time and then closed above it for 11 weeks. This is long-term bullish behavior that signals the potential for a continuation of a developing bull trend. A bull flag pattern has formed during the correction, but it looks like it may need more time to develop. Behavior around the 50-week and 200-week moving averages should continue to provide clues to changes in demand, along with a rising trendline.

Taseko Mines, Ltd. (TGB)

• Price: $2.43
• One-month return: 16.8%
• Average daily trading volume: 8.0 million
• Exchange: NYSE

Taseko Mines, Ltd. (TGB) is a Canadian mining company specializing in copper, gold, molybdenum, niobium, and silver exploration and development across North America. The company’s stock broke out of a bullish descending wedge recently. The larger pattern is not perfect but nonetheless shows the potential for a multiyear bullish breakout. A bull wedge is a trend continuation pattern, and therefore, if strength is retained, the May 2024 peak of $3.15 could be surpassed. That was the highest price for the stock since 2013.

It is not insignificant that the bottom of the wedge at $1.77 was a clear test of support at the 200-week moving average. Notice that the advance prior to the wedge correction was $2.10 or 200%. Increasing volume following the wedge bottom shows improving demand before the breakout and increasing interest in the stock. It can be watched during pullbacks for signs of support that could lead to the stock moving higher.

908 Devices, Inc. (MASS)

• Price: $4.01
• One-month return: 79.0%
• Average daily trading volume: 3.2 million
• Exchange: Nasdaq

A double-bottom bullish reversal pattern triggered in the stock of 908 Devices, Inc. (MASS) in early March. The company operates in the medical devices industry, providing mass spectrometry solutions for diverse scientific and industrial applications. Although the initial breakout quickly failed, the following week, the stock gapped up above the 20-week moving average and then pulled back to test it as support. That was the beginning of a sharp one-week rally and a $2.13, or 78.8%, gain in the
stock to a 30-week high of $4.75. It produced a large outside month for March, reaching a seven-month high.

The first pullback following a breakout of a key pivot level can present one of the better decision points as the trend may just be getting started. A pullback to test support around the 50% retracement and neckline of the double bottom at $3.36 and $3.29, respectively, or higher or lower, should help gauge interest in the stock.

What to Know About Penny Stocks

Many penny stocks trade via over-the-counter (OTC) markets, which means they have minimal regulatory oversight and little analyst coverage, making it difficult to access accurate company information.

However, the penny stocks we’ve identified in this article are all listed on the New York Stock Exchange or Nasdaq, which means they are subject to the same listing requirements as any other company on these exchanges. These requirements are intended to ensure that only high-quality securities are available for trading on the exchange.

While penny stocks are a riskier investment than established stocks due to their volatility, the potential for high returns is attractive to some investors.

How We Chose the Best Penny Stocks

To screen for penny stocks with interesting chart patterns and other technical analysis indicators, we used the following criteria. Stocks had to have positive one-month performance and be priced under $5.00. To help improve the reliability of the chart patterns, the stocks had to have a minimum price of $1.50 and an average 30-day trading volume of at least 200,000. The stock also had to have at least 24 months of trading history.

The charts were also reviewed for bullish patterns, including breakouts above trendlines, key resistance, and moving averages. Candlestick patterns were also considered, as we looked for signs that pointed to a bullish trend reversal or indications that a trend was strengthening. Still, it’s important to remember that past performance is not a guarantee of future performance.

Penny Stock Advantages and Disadvantages

The low price of penny stocks offers investors high potential for growth, and they can give smaller businesses a platform to access funding. But while these stocks can bring investors significant gains, they also carry the risk of significant losses. There are greater risks associated with investing in penny stocks than with more established stocks.

Penny stocks usually lack liquidity. It can also be difficult to find solid public information about penny stock companies that trade over the counter. Given the additional risks, penny stocks are not suitable for all investors, especially those with a low risk tolerance.

Another disadvantage is that the price patterns may take longer to unfold and single-position drawdowns can be larger than normal, given the higher potential volatility in low-priced stocks.

There are ways to mitigate the added risks, starting with raising the minimum price and average trading volume and selecting penny stocks that trade on the NYSE or Nasdaq. Overall portfolio risk can be contained by allocating only a small amount of total capital to the penny stock market.

By carefully screening, watching, and waiting for price patterns to unfold, investors can access a market environment that has the potential for large gains in a relatively short period of time. But that depends on entering a position at the right time.

The Bottom Line 

Penny stocks have the potential to sometimes see sharp multi-week or month rallies that, on a percentage basis, exceed expectations. They can present opportunities for investors that are difficult to find otherwise. This article features five interesting charts of penny stocks that had advanced during the prior month and showed upside potential, given the presented technical analysis.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the securities listed above.

Reviewed by JeFreda R. Brown
Fact checked by Ryan Eichler

What Are 6 Drawbacks of Working for Your Parents?

From the moment you were born, you were on your career path. Now that you’ve graduated from college and earned your degree, the time has come. Unlike your peers who have a long hard road of online applications and job interviews ahead of them, you already have the perfect position waiting for you. You’ll be joining the family business, of course!

If your parents run a family business, joining the family biz seems like a no-brainer. After all, not only are jobs hard to come by, but there are also countless advantages to working for your folks. However, no job is perfect—particularly when your boss happens to be the same person who changed your diapers when you were a baby.

Key Takeaways

• Many of your colleagues, co-workers, and clients may assume you were hired simply because you’re the boss’s child.
• Working for your parents can lead to significant conflict.
• if you keep the lines of communication open and set some clear boundaries from the get-go, you’ll be more likely to survive and even thrive in the family business.

There are quite a few challenges to working for your parents. Not only will outsiders assume you’re not qualified for your job, but one parent will probably embarrass you one day, and another will infuriate you the next.

However, if you keep the lines of communication open and set some clear boundaries from the get-go, you’ll be more likely to survive and even thrive in the family business. Even so, be sure to weigh all the pros and cons before you accept the job.

Understanding the Drawbacks of Working for Your Parents

Drawback No.1: Lack of Respect

Even if you’re the most qualified person for the job, many of your colleagues, co-workers, and clients will assume you were hired simply because you’re the boss’ child.

When folks believe your achievements are solely the result of nepotism, they won’t treat you with respect. This can create a lot of resentment and hostility within the workplace, which can make things uncomfortable for you and everyone else. Not to mention it can be a massive blow to your self-esteem.

Drawback No.2: Family Friction

You grew up with your parents and lived under the same roof for years. So it should be no biggie to spend every day with them at the office. As many others who have joined their family business will tell you, it’s one thing to live with your parents. It’s an entirely different ball game to work for them.

Working for your parents can lead to significant conflict. Because you know each other so well, you may tend to make work disagreements personal. Plus, when you have emotional ties to your boss, it’s a lot easier to get your feelings hurt at the office. Not only can these disagreements lead to family problems, but it can also harm the entire company.

Drawback No.3: There’s No Escape

Once you decide to join the family business, you may feel trapped. Even if a more promising career opportunity comes along, you may feel obligated to stick with the family business. After all, how could you possibly abandon your parents when they’ve spent so many years teaching you the ins and outs of the family business?

If you do decide to accept another job and leave the biz, your family could end up resenting you for it. And do you want to suffer the wrath of your parents’ unique brand of guilt for the rest of your days?

Drawback No.4: You’re Emotionally Invested

When times are tough, and business is slow, you’ll have to watch your parents struggling to make ends meet and keep the company afloat. This can be emotionally draining for you and somewhat embarrassing for them.

After all, no parent wants their child to see them in such a weak position. When you work for your parents as opposed to a large corporation, you take the ups and downs much more personally.

Drawback No.5: Your Ideas Are Shot Down

Your parents may have a hard time seeing you as anything other than their “baby,” so they may not value your opinion as much as other employees.

When you present new ideas at the office, your parents may be more likely to shoot them down or ignore you altogether. After all, you’re their kid. What do you know? This kind of rejection can quickly wear on you and create feelings of resentment.

Drawback No.6: Family Time = Business Time

When you work for your parents, you may begin to feel like all you ever talk about is work. Every time you get together—whether it’s for Thanksgiving dinner or your birthday party—the conversation may always turn to business.

This can put a major strain on your family relationships, and you may feel as if you’re losing the more personal connection you once shared with your parents.

Get the most passive income possible with these top dividend stocks

Dividend stocks are shares of companies that distribute a portion of their profits to shareholders on a regular basis in the form of dividends. Dividend payments, typically distributed quarterly, can be a source of passive income for investors and a sign of the continued financial well-being of the distributing company.

Key Takeaways

• Dividend stocks are companies that regularly pay out a portion of their profits to shareholders in the form of dividends. These may be distributed quarterly, semiannually, or yearly.
• Dividend yield measures the yearly dividend amount a company pays in comparison to its stock price and is expressed as a percentage.
• Dividend yield fluctuates constantly as a company’s share price moves.

Below, we look at 10 dividend stocks to watch for April 2025 as measured by forward dividend yield. We exclude companies with payout ratios that are either negative or higher than 100%. A detailed explanation of our methodology is below. Data throughout are current as of March 31, 2025.

Best Dividend Stocks to Watch in April 2025
Ticker	Company	Sector	Market Cap ($B)	Dividend Yield (%)	Price ($)
TRMD	TORM PLC	Transportation	1.61	35.09	16.48
BWLP	BW LPG Limited	Transportation	1.64	26.52	10.88
ZIM	ZIM Integrated Shipping Services Ltd.	Transportation	1.76	25.65	14.59
ACP	abrdn Income Credit Strategies Fund	Miscellaneous	0.74	20.30	5.89
INSW	International Seaways, Inc.	Transportation	1.63	17.41	33.20
RWAY	Runway Growth Finance Corp.	Finance	0.39	16.65	10.35
SBLK	Star Bulk Carriers Corp.	Transportation	1.82	15.64	15.56
EC	Ecopetrol S.A.	Energy Minerals	21.12	15.37	10.44
JKS	JinkoSolar Holding Company Limited	Electronic Technology	1.01	15.11	18.64
STLA	Stellantis N.V.	Consumer Durables	42.00	14.79	11.21

Why Are These the Best Dividend Stocks?

The dividend stocks included on our list represent companies trading on the Nasdaq or the New York Stock Exchange with share prices of $5 or more, a market capitalization of $300 million or more, and a daily trading volume of at least 100,000. Companies with payout ratios that are either negative or over 100% were also excluded from the list. From the pool of companies remaining, we selected those with the highest forward dividend yield for inclusion on our list. Because dividend yield changes all the time with the price of a company’s stock, this list is also likely to change quickly. Further, these are not the best dividend stocks of all time; they represent those that rose to the top of the list based on our methodology for this month.

Investors prioritize dividend stocks because they provide a steady passive income stream and enjoy the potential for share price growth in the future. Dividends are not necessarily a given, however, even among companies with a history of paying them for many years. Investors should remember that:

Market conditions impact dividends. The broader economic environment has a significant impact on dividend payments. When there is concern about the ability to maintain operations and top- and bottom-line performance due to external market factors, companies may move to reduce or even eliminate dividends as an early protective measure. This allows them to preserve capital in case of turbulent times to come. On the other hand, booming economies can sometimes prompt companies to increase their dividend payments.

Dividend yields may be misleading: Dividend-paying companies may increase a dividend yield to entice investors, but higher dividend payments can be unsustainable. Similarly, a dividend yield may appear higher because of falling stock prices. These are reasons why the payout ratio is an important metric to monitor for dividend stocks.

How to Pick Dividend Stocks

Strong dividend stocks tend to be those of companies with solid fundamentals, a strong profitability horizon, and a sustainable dividend yield that has maintained or, ideally, increased over a period of years.

How to Find Dividend Stocks

Not all sectors and industries are the same when it comes to dividend-paying companies. Finance and energy tend to be sectors with higher dividend payments than others, and real estate investment trusts (REITs) are required to pay out a substantial portion of their income in dividends to shareholders. But it’s also important for investors to look not just at a company’s sector, but also at its dividend performance relative to other companies in that sector.

What Should Investors Look For in Dividend Stocks?

Dividend Payout Ratio (DPR)

DPR is a measure of how much of a company’s earnings are paid to shareholders. The DPR is calculated by dividing total dividends by net income and is often included on brokerage platforms as well as financial news sites.

As an example, if Company X reported a net income of $50,000 and paid $10,000 in yearly dividends, its DPR would be 20% because $10,000 / $50,000 = 20%. In other words, Company X pays 20% of its earnings to shareholders each year. A DPR of under 50% is typically considered stable and sustainable and may be indicative of long-term growth potential. Higher percentages may mean that a company is overpaying on dividends.

Dividend Yield

Dividend yield is a measure of the annual value of dividends received by a shareholder relative to the security’s per-share market value. It can be calculated by dividing the annual dividend per share by the current stock price. Like DPR, this information is often easily found online.

If Company X pays $5 in dividends annually and has a current share price of $100, its dividend yield is 5% because $5 / $100 = 5%. Investors sometimes begin a search for dividend stocks by screening for companies with dividend yields above a certain percentage.

Dividend Coverage Ratio

The dividend coverage ratio measures the number of times a company is able to pay dividends to shareholders and is calculated by dividing annual income by annual dividend per share.

Company X generated $5 million in net income and pays $1 million annually in dividends, hypothetically. In this case, the company has a dividend coverage ratio of 5, or $5 million / $1 million. Higher dividend coverage ratios mean companies can pay dividends a greater number of times based on current income levels.

Besides these metrics, there are other fundamentals that investors should consider as well, including earnings per share (EPS) and total return.

The Bottom Line

For investors looking to generate income from their investments, dividend-paying companies may be a good option. However, before investing in a dividend stock, it is important to research the overall financial health of that company. Higher dividend yields are generally seen as attractive but may be misleading and even a sign of financial instability.

Investors pursuing dividend stocks may be able to reinvest dividends to buy more shares, therefore taking advantage of compounding returns.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above stocks.

The widely followed Standard & Poor’s 500 Index is the standard by which stock market performance in the U.S. is often measured, as it tracks 500 of the largest and most stable publicly traded companies in the country. The index is weighted by market capitalization, which gives more significance to companies with larger market values. The top 25 stocks in the S&P 500 by weight are the largest, most influential companies in the index.

Key Takeaways

• The S&P 500 is widely considered to be one of the best measures of stock market performance and the health of the U.S. economy.
• The 500 stocks tracked by the index represent the nation’s largest, most economically significant companies
• The S&P 500 is weighted by market cap. The larger the company, the more influence its stock price has on the overall index.
• The top 25 stocks in the index are important to follow because of their strong influence on the performance of the index and the economy at large.

As of March 24, 2025, the S&P 500 index is down 2% since the beginning of 2025, as President Donald Trump’s trade policies and threats to impose more tariffs cause widespread economic uncertainty. In addition, the Federal Reserve Board’s decision in mid-March to leave interest rates unchanged rather than cut them is another important factor in the index’s downward slant. Investors’ hopes that rates would come down may have helped prop up stock prices before the Fed announcement.

How are Stocks Selected for the S&P 500?

To be included in the S&P 500, a company must:

• Be based in the United States and trade publicly on a major U. S. exchange
• Maintain a market capitalization of $20.5 billion and a float-adjusted market cap of at least 50% of the index’s total company-level minimum market capitalization threshold
• Have reported positive earnings in the most recent quarter, along with the past four consecutive quarters
• Have a float-adjusted liquidity ratio of 0.75 or greater.
• Have traded a minimum of 250,000 shares in the previous six months before evaluation

The S&P 500 reconstitutes each June. Companies removed from the index are not replaced until the next annual reconstitution.

Top Sectors in the S&P 500

The table below lists the S&P 500’s top sectors by weighting as of March 24, 2025. The information technology, financials, health care, and consumer discretionary sectors carry a cumulative weight of 67.52%. Meanwhile, the least-weighted sectors include energy, utilities, and real estate, which have a combined weight of just 8.07%.

Top 10 Sectors in the S&P 500 by Weight
Information Technology	32.05%
Financials	14.00%
Consumer Discretionary	10.68%
Health Care	10.79%
Communications Services	9.46%
Industrials	7.33%
Consumer Staples	5.87%
Energy	3.30%
Utilities	2.58%
Real Estate	2.19%

Top 25 Companies by Index Weight

These are the top 25 companies by index weight. Since the S&P Global website fails to disclose the weighting of component stocks, we used the S&P 500 exchange-traded fund (ETF), the SPDR S&P 500 ETF Trust (SPY), in order to cite index weighting. The ETF’s holdings are a bit different, but SPY closely reflects the S&P 500 weights.

As of March 24, 2025, here are the largest SPY holdings by weight:

Top 25 Companies by Index Weight
1	APPLE (AAPL)	6.05%
2	MICROSOFT (MSFT)	5.35%
3	NVIDIA (NVDA)	5.33%
4	AMAZON.COM, INC (AMZN)	3.93%
5	ALPHABET CLASS C (GOOG)	3.86%
6	META (META)	2.55%
7	BERKSHIRE HATH (BRK.B)	2.11%
8	ALPHABET CLASS A (GOOGL)	1.84%
9	BROADCOM (AVGO)	1.66%
10	TESLA (TSLA)	1.64%
11	ELI LILLY (LLY)	1.46%
12	JP MORGAN (JPM)	1.32%
13	WALMART (WMT)	1.29%
14	VISA (V)	1.12%
15	EXXON MOBIL (XOM)	0.97%
16	MASTERCARD (MA)	0.94%
17	UNITEDHEALTH GROUP (UNH)	0.90%
18	ORACLE (ORCL)	0.81%
19	NETFLIX (NFLX)	0.81%
20	COSTCO (COST)	0.78%
21	JOHNSON & JOHNSON (JNJ)	0.75%
22	PROCTER AND GAMBLE (PG)	0.73%
23	ABBVIE (ABBV)	0.70%
24	HOME DEPOT (HD)	0.69%
25	BANK OF AMERICA (BAC)	0.63%

Why Are the S&P 500’s Top 25 Stocks Important?

The top 25 stocks in the S&P 500 by index weight are important to analyze because they can be used to gauge the health of the stock market and broader economy. These companies reflect the performance of key sectors and the benchmark itself.

The current period of outperformance by the technology sector, for example, shows how declining inflation, strong margins, and competitive positioning resulting in good cash flow can contribute to gains in the overall index.

How Do I Invest in the S&P 500 Index?

The simplest and easiest way to invest in the S&P 500 is to purchase the popular SPDR S&P 500 ETF (SPY), which reflects the minute-by-minute movements of the index. Other ETFs that also track the S&P 500 this way include the iShares Core S&P 500 ETF (IVV) and Vanguard S&P 500 ETF (VOO).

There are also index funds that reflect only the closing price at the end of the day, including the Vanguard 500 Index Fund (VFIAX) and Fidelity 500 Index Fund (FXAIX). For those interested in more complex strategies, options and futures are also available, such as E-mini S&P Futures contracts, although these are only for those wishing to speculate on the future value of the index.

Advantages and Disadvantages of Investing in the S&P 500 Index

The central advantage of investing in the S&P 500 is the wide diversification it offers across many sectors and industries. By investing in the index, an investor generally reduces the risk associated with buying individual stocks. Over the years, an investment in the S&P 500 can produce long-term growth for those willing to wait out the accompanying short-term volatility.

A disadvantage of S&P 500 investing is how concentrated the index is in the top-performing stocks, a factor that sometimes skews results and can result in increased volatility. Some investors prefer an S&P 500 Equal Weight Index, where each component has an equal weight without regard to the size of its market capitalization.

The Bottom Line

The S&P 500 index weights companies according to their market caps. Larger firms are more heavily weighted than small firms, which carries some risks. The tech sector, which includes giants like Apple, Microsoft, and Nvidia, has an enormous influence on index results. In general, the stock market’s health and that of the U.S. economy can be measured by analyzing the S&P 500’s top 25 components.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

These are the best undervalued stocks to keep an eye on this month

Value investors seek stocks that are trading on the market at a price point below their fundamental value. These stocks typically represent high-quality companies that are either emerging or whose shares have otherwise fallen. While it can be difficult to execute successfully, value investing allows investors to buy stocks at a relatively low price point and then benefit when the market eventually corrects itself and the price rises to be more in line with the company’s underlying value.

In April 2025, some likely candidates for value investors to keep an eye on include pre-clinical pharmaceuticals firm Agios Pharmaceuticals Inc. (AGIO), energy outfit Civitas Resources Inc. (CIVI), and utilities outfit Korea Electric Power Corp. (KEP), among others.

Key Takeaways

• Undervalued stocks on the NYSE and the Nasdaq have 12-month trailing P/E ratios as low as 0.02.
• Value investors believe it is possible to identify companies with shares trading below their fundamental value. Later, when the market corrects this pricing error, investors achieve gains as share prices rise.
• P/E ratio is a key metric used to identify value stocks, but this figure can vary significantly from one sector or industry to the next.
• For this reason, it’s most helpful to compare potential value plays against other peers in the same sector.
• Other common value metrics include forward P/E ratio, price-to-book ratio, and price/earnings-to-growth ratio.

Below, we consider some of the top undervalued stocks for this month, as measured by 12-month trailing price-to-earnings (P/E) ratio. A detailed explanation of our methodology is found below. All data are as of March 25, 2025.

Top Undervalued Stocks By Sector, Based on Lowest 12-Month Trailing P/E Ratio
Ticker	Company	Sector	Market Cap ($B)	12-Month Trailing P/E Ratio	Price ($)
CIVI	Civitas Resources Inc.	Energy	3.4	4.29	36.34
IAG	Iamgold Corp.	Materials	3.5	4.39	6.04
CAAP	Corporación América Airports SA	Industrials	3.1	0.02	19.04
SBH	Sally Beauty Holdings Inc.	Consumer Discretionary	0.9	5.20	8.66
HLF	Herbalife Ltd.	Consumer Staples	0.8	3.29	8.22
AGIO	Agios Pharmaceuticals Inc.	Healthcare	1.8	2.70	30.76
JPM	J.P. Morgan Chase & Co.	Financials	693.6	0.96	18.88
CCSI	Consensus Cloud Solutions Inc.	Information Technology	0.5	5.22	24.10
SBGI	Sinclair Inc.	Communication Services	1.1	3.59	16.69
KEP	Korea Electric Power Corp.	Utilities	9.7	3.87	7.72
PLYM	Plymouth Industrial REIT Inc.	Real Estate	0.8	5.48	16.74

Why Are These the Top Undervalued Stocks?

Our screen for the best undervalued stocks includes firms listed on either the New York Stock Exchange (NYSE) or the Nasdaq and with a price of at least $5 per share, a daily trading volume of 100,000 or more, and a market capitalization of $300 million or more. From that list, we ranked the companies in our screen by 12-month trailing P/E ratio and then selected the stock with the lowest P/E ratio from each sector.

While there are many different metrics used in value investing, P/E ratio is one of the most common. It is a measure of the price of a company’s shares against its earnings. A low P/E ratio often suggests that a firm’s recent earnings have performed well relative to its price, meaning that it is undervalued in the market.

When looking for undervalued stocks, investors should keep in mind that P/E ratio is just one of many measures of a company’s value. It’s important to look at the firm’s financials as well as other metrics like P/S ratio (for firms that have yet to achieve profitability), price-to-book ratio, and price/earnings-to-growth ratio for a fuller picture. That said, it is also inherently difficult to calculate a company’s intrinsic value, and market unpredictability means that even legitimately undervalued firms may never see a stock price increase in the future.

What Should Investors Look For in Undervalued Stocks?

While we looked at trailing P/E ratio in our screen, forward P/E ratio is also a helpful metric to use to identify undervalued stocks. The forward P/E ratio makes use of Wall Street analyst predictions of a company’s future earnings. It can be a helpful way to take stock of how developments on the horizon could impact the company’s performance, although it’s also important to note that forward P/E ratio is intrinsically speculative.

Another way of comparing price and earnings is the price/earnings-to-growth ratio, which also includes an estimate of future earnings growth. This may provide investors with a better sense of how a company is likely to fare with regard to future earnings, as well as whether the firm may be undervalued relative to potential earnings growth.

Price-to-book ratio is a measure of a company’s share price against its net value (assets less liabilities). By looking at the firm’s book value per share, investors can get a fuller view of a company’s financial wellbeing. The price-to-book ratio suggests how much investors may be willing to pay for each dollar of the company’s net value.

Finally, regardless of which metrics one uses to evaluate a company, it’s essential to consider a benchmark. When it comes to value investing, it’s impossible to determine whether a company is undervalued unless one has a sense of how it compares to peers in its industry or sector. Because P/E ratios differ significantly from one sector to another, this information helps investors make the most educated guesses possible about a company’s underlying value.

The Bottom Line

Undervalued companies may have the potential to experience outsized returns if the market corrects the price to more closely match their underlying value. Investors seeking a value play might look to metrics like 12-month trailing P/E ratio as one indicator. Our screen has revealed a selection of stocks across sectors that could be undervalued, although there is no guarantee that investors in these stocks will achieve better-than-expected results.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above stocks.

These are some of the best-performing stocks in the health care sector over the past month

The health care sector is massive and incredibly varied, including companies that make medical equipment or drugs, those that offer medical services, and even those providing insurance in some cases. Within this sector, there are startups that are pre-revenue and working from quarter to quarter to launch an innovative product, major legacy service providers, and everything in between. Investors thus have many options to choose from when focused on health care. At the same time, though, the health care sector is highly complex, and investors are cautioned to familiarize themselves with the ins and outs of health care companies before launching an investment.

Key Takeaways

• Some of the best health care stocks for April 2025, based on 30-day returns, include Regencell Bioscience Holdings Ltd. (RGC), Zhengye Biotechnology Holding Ltd. (ZYBT), and Mineralys Therapeutics Inc. (MLYS).
• The best-performing health care stocks in the last month returned at least 32.2%.
• An aging population and increasing medical needs are two factors contributing to massive growth in the health sector.

We examine several of the best health care stocks to watch for April 2025, based on highest 30-day percentage return. We include an explanation of the other factors in our screen below. All data are current as of March 25, 2025.

Best Health Care Stocks to Watch in April 2025
Ticker	Company	Market Cap ($B)	Price ($)	30-Day Return (%)	P/E Ratio
RGC	Regencell Bioscience Holdings Ltd.	0.6	42.50	872.5	N/A
ZYBT	Zhengye Biotechnology Holding Ltd.	0.4	8.20	74.1	137.8
MLYS	Mineralys Therapeutics Inc.	1.1	16.78	73.2	N/A
CMRX	Chimerix Inc.	0.8	8.51	61.2	N/A
ORGO	Organogenesis Holdings Inc.	0.7	5.22	50.9	932.1
XERS	Xeris Biopharma Holdings Inc.	0.9	5.87	46.4	N/A
TGTX	TG Therapeutics Inc.	6.7	42.80	36.9	306.6
OMI	Owens & Minor Inc.	0.7	8.81	36.6	N/A
TRML	Tourmaline Bio Inc.	0.4	17.12	35.4	N/A
TRVI	Trevi Therapeutics Inc.	0.6	6.61	32.2	N/A

What to Know About the Health Care Sector

The health care sector was among the hardest hit by the COVID-19 pandemic and has yet to fully recover; the sector continues to face a significant labor shortage that has been exacerbated by ongoing inflation concerns. Significant elements of the way health care operations function—from a shift away from in-person medical appointments to changes in insurance and demand for new products, among many others—have forced long-time leaders in the space to reevaluate their offerings and presented openings for upstart firms to gain a foothold. Going forward, the health care sector will wrestle with a growing population of patients who are eligible for Medicaid and Medicare, opportunities presented by AI, and more.

One trend for investors to keep a close eye on is the ongoing popularity of GLP-1 agonists, a type of drug used to treat Type 2 diabetes and to help with weight loss. With about 1 billion people globally living with obesity, the potential market for these drugs is incredibly large. The two leading providers of these drugs are Novo Nordisk A/S (NVO) and Eli Lilly and Co. (LLY), but the market is far from settled.

How We Chose the Best Health Care Stocks

To screen for the best health care stocks this month, we looked at firms listed on either the Nasdaq or the New York Stock Exchange. To ensure we focused on established companies, we filtered out any companies with a share price below $5, with a minimum daily trading volume of under 100,000, and with a market capitalization below $300 million. From that subset of stocks, we ranked companies according to the highest 30-day percentage return.

Notably, all but three of the companies in our results had no P/E ratio. One of the most common reasons for a company to not have a P/E ratio is if it either took a loss or generated no earnings in the given time period, or in the prior-year period for comparison. This makes the calculation of a P/E ratio impossible. For clinical-stage pharmaceutical firms, many of which are pre-revenue or consistently post losses while developing their products, it is common to not have a P/E ratio until the launch of a significant drug product.

Health Care Stock Advantages and Disadvantages

National health expenditures reached $4.9 trillion in 2023, making the health care sector massive. A key benefit health care provides to investors is consistent demand. Because individuals will always have medical needs to be met, the overall demand for health products and services typically remains at least constant and tends to increase over time as populations grow older. Nationwide health care expenditures are expected to surge to $6.8 trillion by the year 2030.

Health care companies are enticing to investors because they are highly incentivized to use and create new technology, both to meet rising demand and to improve the affordability of care they can offer. This focus on innovation may mean that health care stocks offer the potential for short- and long-term gains.

It is common in the sector for individual companies to experience a significant breakout when an important new product is launched—such as a new medical device with broad applications or a blockbuster new drug—or even when clinical trial data is encouraging. Health care stocks often experience astronomical rallies during these moments.

On the other hand, there are some risks to investing in health care companies that investors should be aware of as well. One of the biggest risks is the size and scope of the sector. Due to the technical nature of the work of many health care companies, it can be difficult for outside investors to accurately assess the viability of a company or its products. Additionally, many companies in the space are heavily impacted by legislation, which can change and contribute to volatility.

Undoubtedly there are opportunities for major returns for investors looking to the health care sector. However, no one can predict how a company’s stock may perform. The companies above led the sector in our screen, but past performance is not a guarantee of future returns.

The Bottom Line

The health care sector is massive, complex, and rich with opportunities for investors willing to take the time to understand its ins and outs. Our screen favors companies in the pharmaceuticals space that have experienced strong returns in the last month, occasionally due to the success of a popular drug or other product. But just as some of these firms may rise rapidly, they may also fall just as precipitously, particularly if a promising new product ends up not working as expected.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

These strategies can help you secure your family’s financial future

Fact checked by Vikki Velasquez

It took about 10 years, but Charlie Wright, a retiree from Brooklyn, New York, finally listed her late mother’s house for sale, closing a chapter that had been delayed amid a disagreement with one of her siblings. Wright said she “waited it out” until “she gave in,” and now Wright and her two siblings plan to share the home sale proceeds equally. But Wright acknowledged this decade-long saga could have been avoided had her mother put in place an estate plan that laid out who would receive her assets after her death from cancer.

“If [my mother] would have done it years ago, before we found out that she was sick, that would have been fine,” Wright said. “People: Handle your business, get things in, put things in a proper place so that those who come behind you don’t have to deal with it.”

Wright’s situation is common in the United States. According to a survey conducted by Caring.com, a website that provides information on care of the aging, the number of Americans with a will declined from 33% of respondents in 2022 to 24% in 2025. Without key estate planning documents such as a will in place, an individual cannot convey how their assets should be distributed upon death, potentially leading to family conflicts and court visits.

For this reason, and to protect your family’s wealth and ensure the financial security of future generations, it’s critical to put an estate plan in place.

Key Takeaways

• Estate planning is crucial for protecting family wealth and ensuring financial security.
• Wills and trusts are fundamental tools in managing and distributing assets.
• Power of attorney and healthcare directives can ensure that decisions align with an incapacitated person’s wishes.
• Asset protection strategies include trusts, business entities, and homestead exemptions.
• Professional guidance is essential for personalized and effective estate planning.

Understanding Estate Planning

You may be familiar with the concept of a will, but there are many mechanisms involved in estate planning.

“On its most basic level, estate planning allows anyone to have the ability to determine and communicate to the rest of the world how they want their assets to be handled upon their passing,” says Christina Rosas, member of the trust and estate and property departments at Bond, Schoeneck & King in New York City.

Patrick Simasko, an elder law attorney and financial advisor based in Mount Clemens, Michigan, likens estate planning to building a toolbox.

“You go out in the garage, you’ve got a hammer, a screwdriver, and a wrench,” Simasko says. “Our toolbox is making sure that while you’re alive and healthy, you’re the boss. If you get sick, someone’s there to make your medical and financial decisions. Then, if you pass away, you want your stuff to go to your beneficiaries without probate, without court involvement.”

Here are the estate planning mechanisms that will help you ensure your wishes are honored.

Key Components of Smart Estate Planning

Wills and Trusts

A will is a legal document that lays out how an individual’s assets will be distributed upon their death. It could also outline custody arrangements of minor children. Typically, the individual names a trustee or executor to oversee the estate and ensure that the deceased’s wishes are fulfilled. Trusts are legal structures in which an individual (the grantor or trustor) transfers assets to a trustee for management and distribution according to their wishes. Unlike wills, trusts can go into effect while an individual is still alive.

“The law fills the void if a person doesn’t actually have a will or a trust in place, but very often, people want to have the ability to have some say in what happens with their assets upon their passing,” Rosas says. “Under a will or trust you have certain abilities to maybe even eliminate some of the people who would naturally be entitled to receive a share of an estate, like a child.”

Simasko said that lay people often overestimate the weight of a will—while it’s important, it is still susceptible to probate court. For this reason, Simasko highlights the need to designate beneficiaries across different assets to ensure a testator’s desires are followed. Trusts, on the other hand, bypass probate.

Power of Attorney and Healthcare Directives

While trusts and wills ensure your wishes are followed after your death, power of attorney and healthcare directives ensure your wishes are followed while you’re alive but unable to make decisions for yourself, such as if you are hospitalized or if your mental abilities decline. 

“It’s important when there are emergencies to be able to take actions in fairly short order,” Rosas says. “Having those advanced directives in place ahead of time will facilitate that process and make it easier for everyone involved.”

These directives also cover decisions around assets that cannot be overseen by trusts, including an IRA, 401(k), life insurance, utilities such as cable, pension checks, and health insurance, according to Simasko.

Beneficiary Designations

While wills and trusts are vital estate planning instruments, beneficiary designations can supersede them. Beneficiary designations often dictate the distribution of assets such as retirement accounts or life insurance policies.

Rosas notes that outdated designations can buck the wishes of the deceased. Take a 30-year-old man who names his two children as beneficiaries on a life insurance policy. If he subsequently has two more children but neglects to add them as beneficiaries, only the two named children will receive shares of the asset upon his death.

Or consider an individual who has named their spouse as the beneficiary of retirement benefits and who subsequently files for divorce. If the individual dies before changing their designations and the divorce is finalized, the soon-to-be ex-spouse will still receive those benefits.

“It’s very important that you’re cognizant of who you have named as your beneficiary designation,” Rosas says, “and that you check it from time to time to make sure that it’s still accurate and up to date and to make changes as needed.”

A trust can also be named as a beneficiary of various accounts, which simplifies designations, as only the trust would need to be updated, Simasko said. This approach has drawbacks, however. The assets of a retirement account are subject to required minimum distributions (RMDs) that are calculated by the oldest beneficiary’s life expectancy, removing the ability to maximize the deferral potential of the qualified plan’s interest.

Asset Protection Strategies

Trusts for Asset Protection

Trusts can ensure that certain assets are distributed to designees, but they can also be utilized to shield those assets from future creditors and legal claims. However, only certain types of trusts have these protective attributes.

Revocable trusts, as the name suggests, can be changed at any time, but for that reason they cannot be used to protect assets from creditors or tax authorities. Since the assets remain fully accessible to the grantor, they are also susceptible to creditor claims and taxes. It should be noted that revocable trusts become irrevocable upon the grantor’s death.

Trusts in which changes cannot be made are called, fittingly, irrevocable trusts. Typically, a grantor is not permitted to be a beneficiary of these trusts, meaning assets put into them will be shielded from creditors or legal claims that may arise in the future, Rosas says. (Of course, irrevocable trusts can’t be used to avoid existing creditor or legal claims, as that would be a fraudulent conveyance.) An irrevocable trust is also a good mechanism to segregate the grantor’s assets from the beneficiary, which protects those assets in certain situations, such as a divorce.

Irrevocable trusts can also be utilized to secure Medicaid benefits. Since the program for seniors limits the amount of money an individual can have, a grantor can elect to put funds in an irrevocable trust, meaning those funds are no longer in the individual’s possession. This typically has to be done five years before Medicaid benefits are claimed.

Important

For those who want to secure the financial future of children, those with special needs, or individuals with drug or gambling addictions, there are spendthrift trusts. These put limits on how the trust assets can be used by the beneficiary, effectively shielding the funds from creditors or legal claims.

Business Entities

Establishing an LLC (limited liability company) or corporation is a mechanism used to separate personal from business assets. For example, an individual who owns a construction company would create an LLC or corporation, along with distinct business bank accounts, in case they are sued or the business encounters legal or tax troubles. With this arrangement, only the business’s assets would be susceptible to the claims. Likewise, the owner of rental properties should register those properties under an LLC to shield personal assets against any legal claims. LLCs and corporations aren’t the be-all and end-all of protection, however. Business and home insurance, respectively, will play an important part in protecting the assets of the entities mentioned above.

Homestead Exemptions

Applicable in most states, the homestead exemption shields a primary residence from some creditors following the death of a homeowner’s spouse. It also provides some property tax relief. Each state has its own limits and rules surrounding the homestead exemption.

Tax Considerations and Tax Strategies in Estate Planning

Estate and Gift Taxes

The federal estate tax applies to the recipient of the property of a deceased individual, and consists of an accounting of everything the decedent owns or has certain interests in at the date of death. According to the Internal Revenue Service (IRS), “A filing is required if the gross estate of the decedent, increased by the decedent’s adjusted taxable gifts and specific gift tax exemption, is valued at more than the filing threshold for the year of the decedent’s death.” For 2025, that threshold is $13,990,000.

That’s a level of wealth most people won’t reach. But there’s a solution if you do. “Let’s say your estate is valued at $16 million,” Simasko says. “It’s a huge tax, so what you can do is give away a little bit each year to help reduce your estate.”

This is where gift taxes come into play. The gift giver has to pay a tax on each gift that exceeds the limits set by the IRS. For 2025, that limit is $19,000. So, if an individual decides to give each of their children $19,000 in 2025, the annual exclusion applies to each gift.

Warning

While many states don’t have an estate tax, the 12 that do have their own limits on the size of an estate before it’s susceptible to an estate tax. For example, New York’s estate tax kicks in when an estate is valued at $7.16 million.

Charitable Gifting

The passage of the Tax Cuts and Jobs Act in 2018, which bumped up the standard deduction taxpayers could claim, deflated the importance of charitable gifting in reducing an individual’s tax burden, according to Simasko.

“Charitable giving is important for a philanthropic reason, but it’s really not that beneficial like it was in the old days because of the tax laws that we have,” he says.

However, there are certain instances where charitable giving may be advantageous. Take, for example, a New York-based estate that exceeds the estate tax limit by 5% and whose entirety would be susceptible to the full estate tax (unlike the federal estate tax in which only the excess over the limit would be taxed).

“If you’re over by a few hundred thousand dollars, you might wind up paying a few hundred thousand plus in tax,” Rosas says. “Because it’s that weird little zone where that can apply, most people would rather not pay more tax if they can give the money away to a charity.”

To accomplish this, attorneys establish a “Santa Clause” in a will or trust where a certain amount of funds will be distributed to charity upon the individual’s death to avoid paying more estate tax.

Dynasty Trusts

Think of the historically wealthiest families in America—the Rockefellers or the Fords. To keep their wealth within the family from generation to generation, these families may establish a dynasty trust that allows them to pass on wealth without incurring estate or transfer taxes.

“The assets remain owned by the trust, not by the individuals,” Rosas says. “As the beneficiaries change over time, as the generations go on and people die, the next generation is provided under the trust as the successor beneficiaries.”

When Should You Start Estate Planning?

There are many mechanisms you can utilize to ensure your assets are passed on to your designated beneficiaries and ensure financial security for future generations. To do it in a thoughtful manner, you’ll want to start planning as soon as you have assets you want to protect. After all, no one knows when they will die.

“There’s a drop-dead date that you have to have it done by: the day before you drop dead,” Simasko says. “You need all your medical and financial powers of attorney before you get sick. It’s when you want it and when you need it. You want it now because you don’t know when you’re going to need it later.”

What Are the Potential Risks of Not Having an Estate Plan?

When you are dead, you have no way to convey your wishes. Without an estate plan, you cannot guarantee that your assets will go to the people you want to receive them. Not having one can also lead to messy family situations, where children fight over money or property or ex-spouses try to claim a piece of an estate.

How Often Should an Estate Plan Be Reviewed and Updated?

Every five years is a good rule of thumb to review and update an estate plan, according to Simasko. It’s also vital to update your plan after any big life changes, such as the birth of a child, a divorce, the death of a spouse or child, or the acquisition of a large asset.

What Are the Differences Between Revocable and Irrevocable Trusts?

As their names suggest, a revocable trust is one in which you can still make changes, while an irrevocable trust cannot be changed. Revocable trusts are better suited for younger individuals, whereas an elderly person concerned about their health or mental abilities may prefer to establish an irrevocable trust.

How Can Digital Assets Be Included in an Estate Plan?

Certain digital assets, such as bitcoin, typically don’t allow for beneficiary designations. Instead, there should be a plan in place to get the recipients the necessary information (such as the private key for a wallet) in a timely manner. This could be via a letter of instruction. Digital assets stored on a physical wallet or another kind of device can be stowed in a safety deposit box covered by a will or trust.

What Are the Legal Requirements for Setting Up a Power of Attorney?

Each state has different requirements, but in general it’s a good idea to write out the power of attorney (templates can be found online), sign it, have it notarized, and then file it with the proper office.

The Bottom Line

There are many aspects of estate planning—including wills and trusts, powers of attorney and healthcare directives, and beneficiary designations—along with mechanisms to protect assets and reduce tax burdens. For anyone who has assets and wants those to be distributed according to their wishes, the best time to start estate planning is as soon as possible. Engage the services of an estate attorney and/or financial advisor to walk you through each step and ensure your assets are properly protected. With proper estate planning, you can leave your loved ones with a legacy rather than a big mess.